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http://hdl.handle.net/10419/24225
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| Title: | | R&D and Firm Performance in a Transition Economy  |
| Authors: | | Czarnitzki, Dirk Kraft, Kornelius |
| Issue Date: | | 2006 |
| Series/Report no.: | | ZEW Discussion Papers 06-33 |
| Abstract: | | We estimate the effects of R&D on firms' credit ratings and on financial distress. The main purpose is the comparison of firms in Western Germany and Eastern Germany as a transitional economy. Innovative activity has a positive impact on firm value proxied by ratings in Western Germany, but a negative impact in Eastern Germany. We also consider future financial distress, and find that R&D in Eastern German firms leads to higher default risk, in contrast to Western Germany. There, R&D enhances future performance. This result is highly politically relevant, since the high level of subsidies present in Eastern Germany may be subject to misallocation. |
| Subjects: | | Transitional Economy Credit Rating Bankruptcy Innovation Policy |
| JEL: | | P27 O31 L33 O12 O38 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
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